Bitcoin On Chain Data: The MVRV Ration - The Best Times to Buy and Sell

When is the best time to buy Bitcoin?

In this video we will look at one of my favourite indicators for Buying and Selling Bitcoin The MVRV Ratio is one of the most popular and widely used on-chain metrics. The MVRV Ratio is often viewed as a macro oscillator, useful for exploring Bitcoin market cycles, and particularly for spotting tops and bottoms.

In short it can tell you when the price of Bitcoin is undervalued - which would be a good time to buy; and when the price is overvalued - which would be a good time to sell.

MVRV is shorthand for Market Value (MV) to Realized Value (RV), and is the ratio between the Market Price, and the Realized Price. Since the Realized Price is the average price at which every coin last moved on-chain, MVRV can be thought of as a measure of 'Unrealized Profit' held within the supply.

The Key breakthroughs to watch out for are when the Ratio moves above 2.4 and when it moves below 1.0. These would ideally be the best times to buy and sell Bitcoin.